The Consumer's Utility Function for Goods X and Y Is

question 21

Multiple Choice

The consumer's utility function for goods X and Y is U = 3X + 15Y. Good X is placed on the x-axis and good Y is placed on the y-axis. Which of the following statements is TRUE?
I. The marginal utility of good Y is 15.
II. The MRS_XY = 5.
III. The consumer is always willing to trade away 5 units of good X for 1 unit of good Y.

• A) I and II
• B) II only
• C) I and III
• D) I, II, and III

Describe Maslow's Hierarchy of Needs and apply it to personal life examples.

Use Maslow's Hierarchy of Needs to analyze responses to disasters.

Define and provide examples of sensation seeking and understand its psychological basis.

Discuss the concept of drive-reduction theory, including needs, drives, and homeostasis.

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Definitions:

Disposable Income

This is the amount of money that households have available for spending and saving after income taxes have been accounted for.

Consumption

refers to the total amount of goods and services bought and used by households and individuals.

Savings Rate

The portion of disposable income not spent on consumption of goods and services but saved or invested, usually expressed as a percentage of disposable income.

Consumption

Consumption refers to the use of goods and services by households for personal satisfaction or living standards.